The majority of MPs voted in favour of reducing funding for local councils by 4 percent in 2011-12 compared to 2010-11.

The approved motion stated:

That the Local Government Finance Report (England) 2011-12 (House of Commons Paper No. 748)[1], which was laid before this House on 31 January, be approved.

The Local Government Finance Report (England) 2011-12 sets out how much central Government is going to pay local Government in England.

The Audit Commission has summarised the local Government finance settlement for 2011-12 as follows[3]:

total government revenue funding of £72.7 billion for local authorities in 2011/12, a decrease of 4 per cent compared to 2010/11. When funding for frontline schools, which has been protected from the cuts, is excluded, the decrease in total revenue funding is 9.5 per cent;

distributed £29.4 billion in formula grant in 2011/12, a decrease of 9.9 per cent compared to 2010/11;

provided transitional grant of £96.2 million in 2011/12 for authorities that would otherwise see a reduction in their 'revenue spending power', as defined by central government, of more than 8.8 per cent; and

made £650 million available to fund a council tax freeze in 2011/12.

A Department for Communities and Local Government press release[4] issued on the day the report laid before the house similarly summaries the settlement.

Public Whip is run as a free not-for-profit free service. If you'd like to support us, please
consider switching your electricity and/or gas to Bulb
Energy
who provide 100% renewable electricity and tend to be 20% cheaper than the 'Big Six'. They'll
also pay any exit fees (up to £120) from your old supplier AND give you (and us) a
£50 credit for joining up via our Bulb Referral
Link.